The participation of the Polish Development Fund in the construction of the Polish nuclear power plant can be considered as public aid, and this can definitely cool the enthusiasm for implementing such an idea – this is the opinion of prof. Władysław Mielczarski from the Lodz University of Technology for BiznesAlert.pl. – We have problems with investments all the time. Our economic growth is driven by demand stimulated by social programs. It’s good to start with, but in the long run it’s burning with money in the oven for warming up – said the expert.
PFR and public aid
Professor Władysław Mielczarski, when asked by the BiznesAlert.pl portal or the Polish Development Fund, can support the construction of a nuclear power plant in Poland, stressed that PFR is a state-owned entity financed from state funds. – I am not a lawyer, but I see here the possibility of a conflict with the European Commission about unlawful state aid – said Mielczarski.
The second element is the possibility of indebtedness of Polish energy companies, which according to prof. Mielczarski can be assessed at PLN 20 billion. – This is at least the second too few even for one nuclear block. Support is possible, but not at such a level to start investing – said the expert.
Nuclear power – investment or loss
He gave an investment in the British Hinkley Point as an example. – The largest energy company in Europe (EdF) owned by the French government with 35 years of energy purchase guarantees at a price twice as high as the market price of the UK government in the system of differential contracts approved by the European Commission. And what is the result. For three years funding can not be closed and costs have meanwhile increased, so that a new contract must be concluded (negotiated) – explained prof. Mielczarski.
Asked whether the construction of a nuclear power plant can be considered as an investment in the future, prof. Mielczarski said that it would be “losses and without major effects”. – It is estimated that the PGE EJ1 company, responsible for investments, has already spent over PLN 500 million on location and technology research without any visible effect, not counting the salaries of presidents – he said.
BiznesAlert.pl asked the professor about the possibility of co-financing PGE EJ1 or creating a new target entity out of PKN Orlen. Professor Mielczarski said that you can imagine different combinations, but investments should be profitable. – If we act only for political reasons and sacrifice good companies for it, then we will gain are gaining, but what we gain is an opinion of an irresponsible loser with whom there will be no serious cooperation. We have problems with investments all the time. Our economic growth is driven by demand stimulated by social programs. It’s good to start with, but in the long run it’s burning with money in the oven for warming up – warned the interlocutor of BiznesAlert.pl.
Without an expensive climate policy, the atom will not pay off
So what are the variants of atom financing currently being implemented in the world? The Chinese do it from the budget, the British borrow from the Chinese. Poles and Czechs are looking for the optimal model. Professor Mielczarski emphasizes that “the Chinese are a powerful country with a central control, where the risk – as in socialism – is transferred to the whole society.” – Besides, their investments are much cheaper, but unacceptable in European conditions. Others are looking for a loan, but without much success. Nuclear power plants only made sense together with the armaments program, but they were always big losses. It is trying to revive this nuclear dead by reducing emissions, but it will not work, because emissions are falling and the price of their permits will not exceed 10 euros per tonne, which does not affect the profitability of individual technologies. For nuclear power plants to be profitable, the price of emission permits must have been 80-100 euro per ton. This technology is already in the dump and there is nothing to bury. Nothing will come out of it – said the expert.
Professor Mielczarski stipulated that the investment costs in all new production capacities are “currently difficult to verify and depend on many factors that estimates at this stage may not include”.